Liquor Stores N.A. Ltd. is updated and rated (lower) Buy at $15.98. While the yield is quite attractive, keep in mind that a good yield is nether a sufficient nor a necessary feature of a good investment. I’d be willing to take a relatively small position in this.
I will provide some analysis of its convertible debentures tomorrow. They trade at 104% of par but I would consider placing an order at par and see what happens.
On Monday the S&P 500 was down 0.6% and Toronto was down 1.2%
Toll Brothers was down 3.4% as apparently all the home builders fell on fears that higher interest rates will slow the housing recovery. Canadian Tire was down 1.5%.
Interest rates have risen again this past week. I have no idea whether this is the start of a trend up or just another bump that may soon be retraced. I do think that ultimately interest rates will rise but I can’t guess when.
Preferred shares and all high yield investments tend to decline in price automatically with higher interest rates. Especially longer term and perpetual high yield investments.